Meritage Homes reports second quarter 2026 results
Rhea-AI Summary
Meritage Homes (NYSE:MTH) reported second quarter 2026 home closing revenue of $1.39 billion, down 14% year-over-year on an 11% decline in closings to 3,725 and a 4% lower average closing price of $373,000. Home closing gross margin fell to 18.3% from 21.1%, and net earnings declined 38% to $90.6 million, with diluted EPS of $1.37 versus $2.04. Orders fell 9% to 3,575 homes and ending backlog value decreased 5% to $661.9 million.
For the first half of 2026, home closing revenue declined 16% to $2.50 billion and net earnings dropped 46% to $145.9 million (EPS $2.18). Meritage Homes ended the quarter with $807 million in cash, no revolver borrowings, a net debt-to-capital ratio of 17.1%, and a 9% higher community count. The company returned $131 million to shareholders in Q2 via $100 million of share repurchases and $31 million of dividends, refinanced and upsized its revolving credit facility to $980 million, and now expects full-year 2026 home closings and revenue to be around 5% below 2025.
Positive
- Q2 2026 capital returns $131 million via $100 million buybacks and $31 million dividends
- Cash balance $807 million at June 30, 2026, with no revolver borrowings
- Net debt-to-capital 17.1% at June 30, 2026, indicating a relatively low leverage profile
- Community count 340 at Q2 2026 end, up 9% year-over-year
- Share repurchases YTD 2026 3.34 million shares (4.9% of beginning shares) for $230 million
- Revolving credit facility increased to $980 million and extended maturity to 2031
Negative
- Q2 2026 home closing revenue down 14% year-over-year to $1.39 billion
- Q2 2026 diluted EPS down 33% year-over-year to $1.37
- Q2 2026 home closing gross margin down 280 bps to 18.3%
- First-half 2026 net earnings down 46% year-over-year to $145.9 million
- Q2 2026 net orders down 9% to 3,575 homes; backlog value down 5% to $661.9 million
- 2026 guidance home closing volume and revenue expected around 5% below full-year 2025
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 22 | First-quarter earnings | Negative | +1.7% | Lower revenue, earnings and margins accompanied by positive 24-hour price reaction |
| Jan 28 | Fourth-quarter earnings | Positive | +1.1% | Quarterly results and capital returns accompanied by positive 24-hour price reaction |
| Oct 28 | Third-quarter earnings | Negative | -5.6% | Lower revenue, earnings and margins accompanied by negative 24-hour price reaction |
| Jul 23 | Second-quarter earnings | Negative | -5.0% | Lower earnings and gross margin accompanied by negative 24-hour price reaction |
| Apr 23 | First-quarter earnings | Negative | +1.0% | Lower revenue, earnings and margins accompanied by positive 24-hour price reaction |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings events showed mixed reactions, with three aligned outcomes, two divergences and an average move of -1.33%.
Key Terms
adjusted diluted eps financial
backlog conversion rate financial
home closing gross margin financial
net debt-to-capital ratio financial
real estate inventory impairments financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SCOTTSDALE, Ariz., July 29, 2026 (GLOBE NEWSWIRE) -- Meritage Homes Corporation (NYSE: MTH), the fifth-largest U.S. homebuilder, reported second quarter results for the period ended June 30, 2026.
| Summary Operating Results (unaudited) (Dollars in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | % Chg | 2026 | 2025 | % Chg | ||||||||||
| Homes closed (units) | 3,725 | 4,170 | (11)% | 6,692 | 7,586 | (12)% | |||||||||
| Home closing revenue | $ | 1,387,911 | $ | 1,615,709 | (14)% | $ | 2,495,733 | $ | 2,957,813 | (16)% | |||||
| Average sales price — closings | $ | 373 | $ | 387 | (4)% | $ | 373 | $ | 390 | (4)% | |||||
| Home orders (units) | 3,575 | 3,914 | (9)% | 7,239 | 7,790 | (7)% | |||||||||
| Home order value | $ | 1,376,338 | $ | 1,547,438 | (11)% | $ | 2,776,778 | $ | 3,105,615 | (11)% | |||||
| Average sales price — orders | $ | 385 | $ | 395 | (3)% | $ | 384 | $ | 399 | (4)% | |||||
| Ending backlog (units) | 1,715 | 1,748 | (2)% | ||||||||||||
| Ending backlog value | $ | 661,906 | $ | 695,476 | (5)% | ||||||||||
| Average sales price — backlog | $ | 386 | $ | 398 | (3)% | ||||||||||
| Home closing gross margin | (280) bps | (360) bps | |||||||||||||
| Earnings before income taxes | $ | 120,564 | $ | 193,060 | (38)% | $ | 193,088 | $ | 353,219 | (45)% | |||||
| Net earnings | $ | 90,630 | $ | 146,879 | (38)% | $ | 145,939 | $ | 269,685 | (46)% | |||||
| Diluted EPS | $ | 1.37 | $ | 2.04 | (33)% | $ | 2.18 | $ | 3.73 | (42)% | |||||
MANAGEMENT COMMENTS
"The 2026 spring selling season remained softer than expected this quarter as macroeconomic uncertainty and volatile interest rates continued to pressure buyer psychology. Although below prior year levels, our second quarter 2026 absorptions reflected pockets of solid performance which accelerated community close outs in some markets," said Steven J. Hilton, executive chairman of Meritage Homes.
"Our available home inventory and improved cycle times drove a backlog conversion rate of
"We remain committed to a disciplined capital allocation strategy that balances growth and shareholder returns while ensuring sufficient liquidity in a volatile interest rate environment. During the current quarter, we returned
SECOND QUARTER RESULTS
- Orders of 3,575 homes for the second quarter of 2026 decreased
9% year-over-year mainly as a result of19% lower average absorption pace, which was partially offset by a14% increase in average community count. Second quarter 2026 average sales price ("ASP") on orders of$385,000 was down3% from the second quarter of 2025, primarily due to geographic mix. - The
14% year-over-year decrease in home closing revenue in the second quarter of 2026 to$1.4 billion was due to11% lower closing volume of 3,725 homes combined with a4% decrease in ASP on closings to$373,000 . The closing ASP decline was a function of geographic mix. - Home closing gross margin of
18.3% in the second quarter of 2026 was 280 bps lower than21.1% in the prior year as a result of lost leverage on lower home closing revenue and higher lot costs, which were partially offset by direct cost savings and quicker cycle times. Excluding$3.6 million of real estate inventory impairments and$0.3 million in terminated land deal walk-away charges in the second quarter of 2026, compared to no impairments and$4.2 million in terminated land deal walk-away charges in the prior year, adjusted home closing gross margin was18.6% and21.4% for the second quarters of 2026 and 2025, respectively. - Selling, general and administrative expenses ("SG&A") as a percentage of second quarter 2026 home closing revenue were
10.4% compared to10.2% in the second quarter of 2025, as a result of lost leverage on lower home closing revenue, which was partially offset by decreased compensation expense and an intentional pull back in discretionary expenses. - The second quarter effective income tax rate was
24.8% in 2026 compared to23.9% in 2025 due to higher income state tax. - Net earnings were
$91 million ($1.37 per diluted share) for the second quarter 2026, a38% decrease from$147 million ($2.04 per diluted share) for the second quarter of 2025, mainly resulting from lower home closing revenue and gross profit. Excluding quarterly impairments and walk-away charges for each period, adjusted diluted EPS was$1.42 and$2.09 for the second quarters of 2026 and 2025, respectively.
YEAR TO DATE RESULTS
- Total sales orders for the first six months of 2026 decreased
7% year-over-year, reflecting an18% decrease in average absorption pace partially offset by a14% increase in average communities compared to the first six months of 2025. The4% lower ASP on orders for the first six months of 2026 year-over-year was primarily due to geographic mix. - Home closing revenue decreased
16% year-over-year in the first six months of 2026 to$2.5 billion , driven by12% lower home closing volume and a4% decrease in ASP on closings compared to the first six months of 2025. The4% lower ASP on closings for the first six months of 2026 compared to prior year reflected geographic mix. - Home closing gross margin of
17.9% decreased 360 bps in the first six months of 2026 from21.5% in the prior year due to lost leverage on lower home closing revenue and higher lot costs, which were partially offset by direct cost savings and quicker cycle times. Excluding$6.0 million of real estate inventory impairments and$1.6 million in terminated land deal walk-away charges in the first six months of 2026, compared to no impairments and$5.6 million in terminated land deal walk-away charges in the prior year, adjusted home closing gross margin was18.2% and21.7% for the first six months of 2026 and 2025, respectively. - SG&A as a percentage of home closing revenue was
11.0% in the first six months of 2026 compared to10.7% in the prior year, as a result of lost leverage on lower home closing revenue, which was partially offset by decreased compensation expense and an intentional reduction in discretionary expenses. - The effective income tax rate in the first six months of 2026 was
24.4% compared to23.6% in 2025 due to higher income state tax. - Net earnings were
$146 million ($2.18 per diluted share) for the first six months of 2026, a46% decrease from$270 million ($3.73 per diluted share) for the first six months of 2025, primarily reflecting lower home closing revenue and gross margins. Excluding year-to-date impairments and walk-away charges for each period, adjusted diluted EPS was$2.27 and$3.79 for the first six months of 2026 and 2025, respectively.
BALANCE SHEET & LIQUIDITY
- Cash and cash equivalents at June 30, 2026 totaled
$807 million . This compared to cash and cash equivalents of$775 million at December 31, 2025. - Land acquisition and development spend, net of land development reimbursements, totaled
$357 million and$509 million for the second quarter of 2026 and 2025, respectively. - Approximately 73,200 lots were owned or controlled as of June 30, 2026, compared to approximately 81,900 lots as of June 30, 2025. Nearly 1,700 net new lots were added in the second quarter of 2026, representing an estimated 13 future communities.
- Second quarter 2026 ending community count of 340 was up
9% compared to prior year and down1% sequentially from the first quarter of 2026. - Debt-to-capital and net debt-to-capital ratios were
26.8% and17.1% , respectively, at June 30, 2026, which compared to26.0% and16.9% , respectively, at December 31, 2025. - The Company declared and paid quarterly cash dividends of
$0.48 per share totaling$31 million in the second quarter of 2026. This compared to$0.43 per share totaling$31 million in the second quarter of 2025. Year-to-date dividends paid were$63 million and$61 million in 2026 and 2025, respectively. - During the second quarter of 2026, the Company repurchased 1,528,340 shares of stock, or
2.3% of shares outstanding at the beginning of the quarter, for$100 million . This compared to$45 million in the second quarter of 2025. For the first six months of 2026, the Company repurchased 3,344,160 shares of stock, or4.9% of shares outstanding at the beginning of the year, for$230 million . This compared to year-to-date 2025 spend of$90 million . As of June 30, 2026,$284 million remained available to repurchase. - During the second quarter of 2026, the Company refinanced the revolving credit facility, primarily to increase the facility size to
$980 million and extend its maturity from 2030 to 2031.
GUIDANCE
Based on current market conditions and year-to-date results, we are updating our guidance for full year 2026 home closing volume and revenue to around
CONFERENCE CALL
Management will host a conference call to discuss its second quarter 2026 results at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Thursday, July 30, 2026. To listen, please go to Meritage's Investor Relations page for the live webcast or dial in to 1-800-445-7795 US toll free or 1-785-424-1699. A replay will be available on the Investor Relations page.
| Meritage Homes Corporation and Subsidiaries Consolidated Income Statements (In thousands, except per share data) (Unaudited) | ||||||||||||||
| Three Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | Change $ | Change % | |||||||||||
| Homebuilding: | ||||||||||||||
| Home closing revenue | $ | 1,387,911 | $ | 1,615,709 | $ | (227,798 | ) | (14 | )% | |||||
| Land closing revenue | 12,720 | 8,277 | 4,443 | 54 | % | |||||||||
| Total closing revenue | 1,400,631 | 1,623,986 | (223,355 | ) | (14 | )% | ||||||||
| Cost of home closings | (1,134,298 | ) | (1,274,381 | ) | (140,083 | ) | (11 | )% | ||||||
| Cost of land closings | (12,196 | ) | (8,996 | ) | 3,200 | 36 | % | |||||||
| Total cost of closings | (1,146,494 | ) | (1,283,377 | ) | (136,883 | ) | (11 | )% | ||||||
| Home closing gross profit | 253,613 | 341,328 | (87,715 | ) | (26 | )% | ||||||||
| Land closing gross profit/(loss) | 524 | (719 | ) | 1,243 | 173 | % | ||||||||
| Total closing gross profit | 254,137 | 340,609 | (86,472 | ) | (25 | )% | ||||||||
| Financial Services: | ||||||||||||||
| Revenue | 7,784 | 9,425 | (1,641 | ) | (17 | )% | ||||||||
| Expense | (4,141 | ) | (4,656 | ) | (515 | ) | (11 | )% | ||||||
| Earnings from financial services unconsolidated entities and other, net | 1,684 | 842 | 842 | 100 | % | |||||||||
| Financial services profit | 5,327 | 5,611 | (284 | ) | (5 | )% | ||||||||
| Commissions and other sales costs | (91,805 | ) | (108,830 | ) | (17,025 | ) | (16 | )% | ||||||
| General and administrative expenses | (52,380 | ) | (55,183 | ) | (2,803 | ) | (5 | )% | ||||||
| Interest expense | (2,187 | ) | — | 2,187 | N/A | |||||||||
| Other income, net | 7,472 | 10,853 | (3,381 | ) | (31 | )% | ||||||||
| Earnings before income taxes | 120,564 | 193,060 | (72,496 | ) | (38 | )% | ||||||||
| Provision for income taxes | (29,934 | ) | (46,181 | ) | (16,247 | ) | (35 | )% | ||||||
| Net earnings | $ | 90,630 | $ | 146,879 | $ | (56,249 | ) | (38 | )% | |||||
| Earnings per common share: | ||||||||||||||
| Basic | Change $ or shares | Change % | ||||||||||||
| Earnings per common share | $ | 1.38 | $ | 2.06 | $ | (0.68 | ) | (33 | )% | |||||
| Weighted average shares outstanding | 65,787 | 71,456 | (5,669 | ) | (8 | )% | ||||||||
| Diluted | ||||||||||||||
| Earnings per common share | $ | 1.37 | $ | 2.04 | $ | (0.67 | ) | (33 | )% | |||||
| Weighted average shares outstanding | 66,131 | 71,900 | (5,769 | ) | (8 | )% | ||||||||
| Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | Change $ | Change % | |||||||||||
| Homebuilding: | ||||||||||||||
| Home closing revenue | $ | 2,495,733 | $ | 2,957,813 | $ | (462,080 | ) | (16 | )% | |||||
| Land closing revenue | 22,081 | 23,698 | (1,617 | ) | (7 | )% | ||||||||
| Total closing revenue | 2,517,814 | 2,981,511 | (463,697 | ) | (16 | )% | ||||||||
| Cost of home closings | (2,048,322 | ) | (2,320,835 | ) | (272,513 | ) | (12 | )% | ||||||
| Cost of land closings | (21,826 | ) | (21,252 | ) | 574 | 3 | % | |||||||
| Total cost of closings | (2,070,148 | ) | (2,342,087 | ) | (271,939 | ) | (12 | )% | ||||||
| Home closing gross profit | 447,411 | 636,978 | (189,567 | ) | (30 | )% | ||||||||
| Land closing gross profit | 255 | 2,446 | (2,191 | ) | (90 | )% | ||||||||
| Total closing gross profit | 447,666 | 639,424 | (191,758 | ) | (30 | )% | ||||||||
| Financial Services: | ||||||||||||||
| Revenue | 14,069 | 16,507 | (2,438 | ) | (15 | )% | ||||||||
| Expense | (7,764 | ) | (8,848 | ) | (1,084 | ) | (12 | )% | ||||||
| Earnings from financial services unconsolidated entities and other, net | 2,515 | 1,515 | 1,000 | 66 | % | |||||||||
| Financial services profit | 8,820 | 9,174 | (354 | ) | (4 | )% | ||||||||
| Commissions and other sales costs | (171,277 | ) | (203,550 | ) | (32,273 | ) | (16 | )% | ||||||
| General and administrative expenses | (103,782 | ) | (112,180 | ) | (8,398 | ) | (7 | )% | ||||||
| Interest expense | (2,774 | ) | — | 2,774 | N/A | |||||||||
| Other income, net | 14,435 | 20,351 | (5,916 | ) | (29 | )% | ||||||||
| Earnings before income taxes | 193,088 | 353,219 | (160,131 | ) | (45 | )% | ||||||||
| Provision for income taxes | (47,149 | ) | (83,534 | ) | (36,385 | ) | (44 | )% | ||||||
| Net earnings | $ | 145,939 | $ | 269,685 | $ | (123,746 | ) | (46 | )% | |||||
| Earnings per common share: | ||||||||||||||
| Basic | Change $ or shares | Change % | ||||||||||||
| Earnings per common share | $ | 2.19 | $ | 3.76 | $ | (1.57 | ) | (42 | )% | |||||
| Weighted average shares outstanding | 66,573 | 71,684 | (5,111 | ) | (7 | )% | ||||||||
| Diluted | ||||||||||||||
| Earnings per common share | $ | 2.18 | $ | 3.73 | $ | (1.55 | ) | (42 | )% | |||||
| Weighted average shares outstanding | 66,934 | 72,246 | (5,312 | ) | (7 | )% | ||||||||
| Meritage Homes Corporation and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) (Unaudited) | |||||
| June 30, 2026 | December 31, 2025 | ||||
| Assets: | |||||
| Cash and cash equivalents | $ | 807,267 | $ | 775,157 | |
| Other receivables | 304,098 | 306,956 | |||
| Real estate(1) | 5,891,978 | 5,987,120 | |||
| Deposits on real estate under option or contract | 168,977 | 174,170 | |||
| Investments in unconsolidated entities | 59,423 | 57,268 | |||
| Property and equipment, net | 46,085 | 46,647 | |||
| Deferred tax asset, net | 47,064 | 53,293 | |||
| Prepaids, other assets and goodwill | 230,041 | 221,676 | |||
| Total assets | $ | 7,554,933 | $ | 7,622,287 | |
| Liabilities: | |||||
| Accounts payable | $ | 215,737 | $ | 200,679 | |
| Accrued and other liabilities | 423,865 | 387,698 | |||
| Home sale deposits | 10,017 | 9,213 | |||
| Loans payable and other borrowings | 39,535 | 24,328 | |||
| Senior and convertible senior notes, net | 1,807,842 | 1,804,726 | |||
| Total liabilities | 2,496,996 | 2,426,644 | |||
| Stockholders' Equity: | |||||
| Preferred stock | — | — | |||
| Common stock, par value | 652 | 682 | |||
| Additional paid-in capital | — | — | |||
| Retained earnings | 5,057,285 | 5,194,961 | |||
| Total stockholders’ equity | 5,057,937 | 5,195,643 | |||
| Total liabilities and stockholders’ equity | $ | 7,554,933 | $ | 7,622,287 | |
(1)Real estate – Allocated costs: | |||||
| Homes completed and under construction | $ | 1,891,356 | $ | 2,069,548 | |
| Finished home sites and home sites under development | 3,922,515 | 3,917,572 | |||
| Consolidated real estate not owned | 78,107 | — | |||
| Total real estate | $ | 5,891,978 | $ | 5,987,120 | |
| Meritage Homes Corporation and Subsidiaries Consolidated Statements of Cash Flows (In thousands) (Unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net earnings | $ | 145,939 | $ | 269,685 | |||
| Adjustments to reconcile net earnings to net cash provided by/(used in) operating activities: | |||||||
| Depreciation and amortization | 11,451 | 12,612 | |||||
| Real estate and land impairments | 6,009 | — | |||||
| Write-off of terminated land deals | 1,649 | 5,638 | |||||
| Stock-based compensation | 11,682 | 9,922 | |||||
| Equity in earnings from unconsolidated entities | (2,085 | ) | (2,164 | ) | |||
| Distribution of earnings from unconsolidated entities | 2,027 | 2,116 | |||||
| Other | 6,173 | 2,189 | |||||
| Changes in assets and liabilities: | |||||||
| Decrease/(increase) in real estate | 132,331 | (224,617 | ) | ||||
| Decrease/(increase) in deposits on real estate under option or contract | 2,625 | (30,415 | ) | ||||
| Increase in other receivables, prepaids and other assets | (3,101 | ) | (43,264 | ) | |||
| Decrease in accounts payable and accrued and other liabilities | (24,723 | ) | (21,013 | ) | |||
| Increase/(decrease) in home sale deposits | 804 | (9,564 | ) | ||||
| Net cash provided by/(used in) operating activities | 290,781 | (28,875 | ) | ||||
| Cash flows from investing activities: | |||||||
| Investments in unconsolidated entities | (15,583 | ) | (9,377 | ) | |||
| Purchases of property and equipment | (9,876 | ) | (12,359 | ) | |||
| Proceeds from sales of property and equipment | 190 | 126 | |||||
| Maturities/sales of investments and securities | — | 750 | |||||
| Payments to purchase investments and securities | — | (750 | ) | ||||
| Net cash used in investing activities | (25,269 | ) | (21,610 | ) | |||
| Cash flows from financing activities: | |||||||
| Repayment of loans payable and other borrowings | (48 | ) | (11,213 | ) | |||
| Proceeds from issuance of senior notes | — | 497,195 | |||||
| Payment of debt issuance costs | — | (5,106 | ) | ||||
| Proceeds from liabilities related to consolidated real estate not owned | 59,947 | — | |||||
| Dividends paid | (63,301 | ) | (61,484 | ) | |||
| Repurchase of shares | (230,000 | ) | (89,999 | ) | |||
| Net cash (used in)/provided by financing activities | (233,402 | ) | 329,393 | ||||
| Net increase in cash and cash equivalents | 32,110 | 278,908 | |||||
| Beginning cash and cash equivalents | 775,157 | 651,555 | |||||
| Ending cash and cash equivalents | $ | 807,267 | $ | 930,463 | |||
Meritage Homes Corporation and Subsidiaries
Operating Data
(Dollars in thousands)
(Unaudited)
We aggregate our homebuilding operating segments into reporting segments based on similar long-term economic characteristics and geographical proximity. Our three reportable homebuilding segments are as follows:
- West: Arizona, California, Colorado, and Utah
- Central: Tennessee and Texas
- East: Alabama, Florida, Georgia, Mississippi, North Carolina and South Carolina
| Three Months Ended June 30, | |||||||||
| 2026 | 2025 | ||||||||
| Homes | Value | Homes | Value | ||||||
| Homes Closed: | |||||||||
| West Region | 825 | $ | 400,755 | 1,165 | $ | 549,205 | |||
| Central Region | 1,308 | 446,726 | 1,374 | 480,425 | |||||
| East Region | 1,592 | 540,430 | 1,631 | 586,079 | |||||
| Total | 3,725 | $ | 1,387,911 | 4,170 | $ | 1,615,709 | |||
| Homes Ordered: | |||||||||
| West Region | 762 | $ | 391,197 | 1,001 | $ | 484,756 | |||
| Central Region | 1,259 | 439,882 | 1,298 | 475,275 | |||||
| East Region | 1,554 | 545,259 | 1,615 | 587,407 | |||||
| Total | 3,575 | $ | 1,376,338 | 3,914 | $ | 1,547,438 | |||
| Six Months Ended June 30, | |||||||||
| 2026 | 2025 | ||||||||
| Homes | Value | Homes | Value | ||||||
| Homes Closed: | |||||||||
| West Region | 1,511 | $ | 736,938 | 2,163 | 1,028,841 | ||||
| Central Region | 2,416 | 823,026 | 2,561 | 892,962 | |||||
| East Region | 2,765 | 935,769 | 2,862 | 1,036,010 | |||||
| Total | 6,692 | $ | 2,495,733 | 7,586 | $ | 2,957,813 | |||
| Homes Ordered: | |||||||||
| West Region | 1,660 | $ | 835,490 | 2,094 | 1,024,350 | ||||
| Central Region | 2,575 | 897,181 | 2,663 | 964,435 | |||||
| East Region | 3,004 | 1,044,107 | 3,033 | 1,116,830 | |||||
| Total | 7,239 | 2,776,778 | 7,790 | 3,105,615 | |||||
| At June 30, | |||||||||
| 2026 | 2025 | ||||||||
| Homes | Value | Homes | Value | ||||||
| Order Backlog: | |||||||||
| West Region | 334 | $ | 173,220 | 366 | $ | 182,308 | |||
| Central Region | 616 | 218,725 | 583 | 220,889 | |||||
| East Region | 765 | 269,961 | 799 | 292,279 | |||||
| Total | 1,715 | $ | 661,906 | 1,748 | $ | 695,476 | |||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Ending | Average | Ending | Average | Ending | Average | Ending | Average | ||||||||
| Active | |||||||||||||||
| West Region | 89 | 88.5 | 85 | 85.0 | 89 | 86.6 | 85 | 87.0 | |||||||
| Central Region | 99 | 103.0 | 85 | 83.5 | 99 | 106.1 | 85 | 85.6 | |||||||
| East Region | 152 | 151.0 | 142 | 132.5 | 152 | 147.7 | 142 | 125.2 | |||||||
| Total | 340 | 342.5 | 312 | 301.0 | 340 | 340.4 | 312 | 297.8 | |||||||
| Meritage Homes Corporation and Subsidiaries Supplement and Non-GAAP information (Unaudited) Supplemental Information (Dollars in thousands): | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Depreciation and amortization | $ | 6,078 | $ | 6,663 | $ | 11,451 | $ | 12,612 | |||||||
| Summary of Capitalized Interest: | |||||||||||||||
| Capitalized interest, beginning of period | $ | 84,464 | $ | 57,107 | $ | 77,064 | $ | 53,678 | |||||||
| Interest incurred | 20,114 | 19,995 | 40,119 | 34,709 | |||||||||||
| Interest expensed | (2,187 | ) | — | (2,774 | ) | — | |||||||||
| Interest amortized to cost of home and land closings | (15,654 | ) | (13,288 | ) | (27,672 | ) | (24,573 | ) | |||||||
| Capitalized interest, end of period | $ | 86,737 | $ | 63,814 | $ | 86,737 | $ | 63,814 | |||||||
Reconciliation of Non-GAAP Information (Dollars in thousands):
This press release includes comments and discussion about our operating results that reflect certain adjustments, including to home closing gross profit, home closing gross margin, earnings before income taxes, net earnings, diluted earnings per common share, and debt-to-capital ratios. These are considered non-GAAP financial measures and should be considered in addition to, rather than as a substitute for, the comparable GAAP financial measures. We believe these non-GAAP financial measures are relevant and useful to investors in understanding our operating results and may be helpful in comparing our company with other companies in the homebuilding and other industries to the extent they provide similar information. We encourage investors to understand the methods used by other companies to calculate these non-GAAP financial measures and any adjustments thereto before comparing to our non-GAAP financial measures.
| Home Closing Gross Profit and Home Closing Gross Margin | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Home closing gross profit | $ | 253,613 | $ | 341,328 | $ | 447,411 | $ | 636,978 | |||||||
| Home closing gross margin | 18.3 | % | 21.1 | % | 17.9 | % | 21.5 | % | |||||||
| Add: Real estate-related impairments | 3,582 | — | 6,009 | — | |||||||||||
| Add: Write-off of terminated land deals | 276 | 4,205 | 1,649 | 5,638 | |||||||||||
| Adjusted home closing gross profit | $ | 257,471 | $ | 345,533 | $ | 455,069 | $ | 642,616 | |||||||
| Adjusted home closing gross margin | 18.6 | % | 21.4 | % | 18.2 | % | 21.7 | % | |||||||
| Earnings before income taxes, Net earnings and Diluted earnings per common share | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Earnings before income taxes | $ | 120,564 | $ | 193,060 | $ | 193,088 | $ | 353,219 | |||||||
| Add: Real estate-related impairments | 3,582 | — | 6,039 | — | |||||||||||
| Add: Write-off of terminated land deals | 276 | 4,205 | 1,649 | 5,638 | |||||||||||
| Adjusted earnings before income taxes | $ | 124,422 | $ | 197,265 | $ | 200,776 | $ | 358,857 | |||||||
| Incremental tax rate | 24.6 | % | 24.1 | % | 24.7 | % | 24.3 | % | |||||||
| Adjusted provision for income tax | (30,883 | ) | (47,194 | ) | (49,048 | ) | (84,904 | ) | |||||||
| Adjusted net earnings | 93,539 | 150,071 | 151,728 | 273,953 | |||||||||||
| Diluted earnings per common share | $ | 1.37 | $ | 2.04 | $ | 2.18 | $ | 3.73 | |||||||
| Adjusted diluted earnings per common share | $ | 1.42 | $ | 2.09 | $ | 2.27 | $ | 3.79 | |||||||
| Debt-to-Capital Ratios | |||||||
| June 30, 2026 | December 31, 2025 | ||||||
| Senior and convertible senior notes, net and loans payable and other borrowings | $ | 1,847,377 | $ | 1,829,054 | |||
| Stockholders' equity | 5,057,937 | 5,195,643 | |||||
| Total capital | $ | 6,905,314 | $ | 7,024,697 | |||
| Debt-to-capital | 26.8 | % | 26.0 | % | |||
| Senior and convertible senior notes, net and loans payable and other borrowings | $ | 1,847,377 | $ | 1,829,054 | |||
| Less: cash and cash equivalents | (807,267 | ) | (775,157 | ) | |||
| Net debt | $ | 1,040,110 | $ | 1,053,897 | |||
| Stockholders’ equity | 5,057,937 | 5,195,643 | |||||
| Total net capital | $ | 6,098,047 | $ | 6,249,540 | |||
| Net debt-to-capital | 17.1 | % | 16.9 | % | |||
About Meritage Homes Corporation
Meritage is the fifth-largest public homebuilder in the United States, based on homes closed in 2025. The Company offers energy-efficient and affordable entry-level and first move-up homes. Operations span across Arizona, California, Colorado, Utah, Tennessee, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, and South Carolina.
Meritage has delivered over 210,000 homes in its 41-year history, and has a reputation for its distinctive style, quality construction, and award-winning customer experience. The Company is an industry leader in energy-efficient homebuilding, an eleven-time recipient of the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR® Partner of the Year for Sustained Excellence Award and Residential New Construction Market Leader Award, as well as a four-time recipient of the EPA's Indoor airPLUS Leader Award.
For more information, visit www.meritagehomes.com.
The information included in this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations about the housing market in general and our future results including our full year 2026 projected home closing volume, home closing revenue and community count growth.
Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically. These risks and uncertainties include, but are not limited to, the following: increases in interest rates or decreases in mortgage availability, and the cost and use of rate locks and buy-downs; the cost of materials used to develop communities and construct homes; shortages in the availability and cost of subcontract labor; legislation related to tariffs; cancellation rates; supply chain and labor constraints; the ability of our potential buyers to sell their existing homes; the adverse effect of slow absorption rates; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; impairments of our real estate inventory; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our exposure to counterparty risk with respect to our capped calls; our ability to obtain financing if our credit ratings are downgraded; our exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; sustainability matters and disclosures; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations; liabilities or restrictions resulting from regulations applicable to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic, and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2025 and our subsequent Form 10-Qs under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.
| Contacts: | Emily Tadano, VP Investor Relations and External Communications |
| (480) 515-8979 (office) | |
| investors@meritagehomes.com |
